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Benny Higgins, the chief executive of Tesco Bank, admitted the current account would be a ‘drag’ on profits in the early years.

He also refused to reveal how much has been spent on launching the account, or how many customers Tesco aims to attract.

But Tesco is gambling the supermarket can win over a significant proportion of 16million regular shoppers with Tesco Clubcards.

‘We don’t have a target in terms of market share, but we also didn’t with credit cards,’ said Higgins. The guarded comments contrast with rival challenger bank TSB’s bold declaration that it aims to boost the lender’s share of the current account market from 4.2 per cent to 6 per cent, increasing a customer base from 4.5million to around 6million. Higgins’ reticence may not sit well with investors who have seen the supermarket lose an estimated one million customers a week to cheaper rivals such as Aldi and Lidl.

But Tesco is convinced that current account customers will spend more in stores, while also taking out more Isas, loans and credit cards.

Tesco Bank hopes to attract many of its six million customers to the current account.

Last night Tesco shares climbed 3.55p, or 1.22 per cent, to finish the day on 294.1p.